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Non-cooperative pollution control in an inter-jurisdictional setting

Listed author(s):
  • Boadway, Robin
  • Song, Zhen
  • Tremblay, Jean-François

This paper examines various circumstances under which decentralized pollution policies can be efficient both in federal settings and in multi-region settings with labor mobility. We consider a model in which pollution control policies are set by regional governments non-cooperatively and pollution damages are borne by the residents of all regions. We characterize the efficiency of pollution policies, and of population allocation among regions, in a variety of scenarios, including when pollution policies are enacted before interregional transfers are determined by the federal government and before migration occurs; when migration decisions are taken before policy decisions; in the absence of a central government if regional governments can make voluntary interregional transfers; when decisions over pollution control policies are followed by voluntary contributions by regions to a national public good; when regions can commit to matching the abatement efforts of each other; and when regions can commit to specific levels of abatement contingent on the emissions of other regions not exceeding some maximum level.

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File URL: http://www.sciencedirect.com/science/article/pii/S0166046213000598
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Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 43 (2013)
Issue (Month): 5 ()
Pages: 783-796

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Handle: RePEc:eee:regeco:v:43:y:2013:i:5:p:783-796
DOI: 10.1016/j.regsciurbeco.2013.07.003
Contact details of provider: Web page: http://www.elsevier.com/locate/regec

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